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Find Out All About Forex Trading
CandlesticksCandlesticks and intuition: seeking confirmation in a volatile market
Once a forex trader understands that candlesticks give an indication of market psychology and enthusiasm (or lack thereof) at a given point in time, deciphering their meaning becomes intuitive.
Consider the current one-hour chart of USD/JPY, below:
It takes little imagination to see that the candlesticks inside the violet [...]
In forex trading, a doji candlestick is formed when the open and close prices for a specified time period are the same or within a few pips of each other, forming a small or non-existent body. The wicks can be long or short, above or below or both, but it is the small body that [...]
The four important prices for any forex trading chart are: high, low, open, and close. Western charts generally portray these prices through the use of solid bars, with the upper and lower edges representing the high and low, respectively, and the open and close indicated by horizontal “arms” to the left and right. For an [...]
The ability to determine a breakout’s direction after consolidation is completed can give forex traders an edge over the market.
In forex trading, the candlestick pattern known as consolidation occurs when a trend loses momentum. Sometimes momentum is lost due to profit taking, when traders exit the market to lock in their winnings. In this case [...]
